This Week’s News & Insights

Good morning,

Here’s what’s going on in the short-term rental world this week:

Real estate investors cheered the Fed’s 0.25% rate cut that signals more easing ahead, Airbnb’s CEO signaled frustration with sluggish growth while rolling out plans for a dedicated hotel interface, and Vrbo listings are getting prime visibility across Expedia’s massive distribution network.

On the regulatory front: Buena Vista, CO is locking down with strict new license caps and a two-year ownership rule, while Boulder, CO is moving the other direction by pushing a festival license that would let owners rent during big events like Sundance, and Martha’s Vineyard faces a courtroom battle over workforce housing being used as STRs.

Lets dive in. 

NEWS

Headline Roundup

• Real Estate Investors Cheer Fed’s 0.25% Rate Cut (The Host Report)

• Airbnb Prepares a Dedicated Hotel Interface Inside Its App (Phocuswire)

• Vrbo Takes a Big Leap Forward: Better Distribution, AI Upgrades, and New Rules (The Host Report)

• IRS to focus on vacation home rentals in 2025 (Bellingham Herald)

• Casago Selects Local Franchise Partner in Coeur d’Alene (The Host Report)

• European Union Advances New Rules on Short-Term Rentals (European Parliament)

• Airbnb CEO Signals Frustration With Company’s Current Growth Trajectory (Entrepreneur)

• Middle Schoolers Run an Airbnb as Entrepreneurship Lesson in North Carolina (Daily Yonder)

• OpenAI Chair Outlines AI’s Role in Reshaping Global Travel (Phocuswire)

• Lake.com Secures $2.6M Pre-Seed Round to Grow Its Waterfront Rentals Platform (Businesswire)

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INTERESTING INSIGHTS

The Pickleball Premium: How One Amenity Adds $59K Annual Revenue

I recently came across a data-backed blog post by Host Genie quantifying the ROI of adding a pickleball court to your short-term rental.

We all know standout amenities drive revenue, but this analysis uses AirDNA data and a tight methodology to show just how profitable pickleball can be.

The researcher analyzed 100 properties in Phoenix/Scottsdale, and filtered for properties with 300+ operating days and 20+ reviews in the past year. Then, they used comparative revenue analysis, regression modeling, and interaction effect testing to isolate the impact of pickleball courts. If that sounds like a lot of math… it is. Here are the key findings:

Key Results:

• Properties with pickleball courts earn $58,970 more annually than those without

• Properties with pickleball courts have a higher median revenue, suggesting these homes attract more guests

• The revenue increase from pickleball courts is consistent across property sizes, making it a scalable upgrade

To be fair, the study focused only on one region and did not control for every variable (like design quality or other high-end amenities). But the correlation is strong, and the logic checks out.

Pickleball has been the fastest-growing sport in the U.S. for four straight years. The players are both wealthier and younger than ever:

• The pickball-playing community overall remains wealthier than the national median, with the majority of players reporting $150K+ household income

• The average player age dropped from 47.5 years (2021) to 34.8 years (2025), with the fastest growth among high-earning younger professionals - indicating continued demand for years to come. 

With pickleball's growing popularity among high-income demographics, and seeing a study outlining the ROI, it makes installing a pickleball court a compelling investment for STR owners looking to invest in amenities to differentiate their properties.

MARKET INSIGHTS

Mortgage Rate Snapshot

Mortgage rates whipsawed over the past week, starting with a sharp spike higher immediately after the Fed’s September 17th rate cut. Contrary to expectations, Powell’s press conference and the Fed’s dot plot drove volatility that left rates about 0.25% higher over two days, hitting two-week highs. Markets then stabilized with Powell’s latest remarks reassuring traders, keeping rates roughly flat at elevated levels.

Regulations Update

• Buena Vista, Colorado, has capped short-term rental licenses at 119 for out-of-county owners and 30 for in-county non-primary residences, while completely banning out-of-county licenses in R-1 zones and requiring two-year ownership eligibility

• Boulder, Colorado, is advancing a festival event license allowing property owners to rent homes up to 29 days annually during events like Sundance for $190, renewable every four years

• Martha's Vineyard, Massachusetts, faces a lawsuit challenging restrictions on using workforce housing units for short-term rentals, with trial set for October 14, 2025

See this weeks full regulations report here: (The Host Report)